On Monday, Big Four firm Ernst & Young announced they will cut almost 5% of its US workforce, roughly 3,000 jobs. According to reports, the cuts will primarily impact EY’s consulting business.
The move comes after the unit’s objection squashed the firm’s plan to break up its audit and consulting units.
The Gateway Pundit reported that in 2022, EY was fined $100 million by the SEC after auditors reportedly ‘cheated’ on their ethics exam.
Ernst & Young said Monday that it would eliminate roughly 3,000 jobs from its US workforce as it pivots to address shifts in demand and “overcapacity” in sections of its business.
The cuts represent less than 5% of the US firm’s total workforce. EY described the workforce reduction as “part of the ongoing management of our business” and said it didn’t stem from the firm’s recent failure to implement a global breakup.
“After assessing the impact of current economic conditions, strong employee retention rates and overcapacity in parts of our firm, we have made the difficult business decision to separate approximately 3,000 US employees,” EY said in a statement.
EY US generates more than 40% of the firm’s global revenue and employs about 50,000 professionals.
Large accounting firms like EY typically lay off staff in the spring ahead of the June end of their fiscal years, but it wasn’t clear whether the latest cuts were coming in addition to those performance-based pink slips. The Big Four accounting firm did not immediately respond to additional questions about its downsizing.
EY’s cutback is just the latest in a string of layoffs among the firm’s consulting industry competitors—a sector that’s been hampered by slagging demand and too many professionals. Last month McKinsey & Co. said it would eliminate 1,400 positions and Accenture Plc said it would cut 19,000 jobs.
KPMG LLP, a Big Four accounting competitor, is cutting 700 jobs from its consulting business, it said in February.
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